Seniors listen to a round table discussion on the benefits of the Affordable Care Act.
By BRETT NORMAN | 7/28/11 8:36 AM EDT
The Affordable Care Act will drive health care spending up slightly, to nearly a fifth of the country’s gross domestic product by 2020, while extending insurance coverage to 30 million more Americans, a new report from CMS projects.
But health care’s hefty share of the country’s economic output is reached through an average annual growth in medical spending of 5.8 percent over the next decade — just 0.1 percent more than would have been spent without the health reform law, the report claims.
CMS published its findings this morning in Health Affairs. The report also projects that once all the data are in, health spending in 2010 will have grown a historically low 3.9 percent — slightly lower than the previous record low growth of 4 percent in 2009.
That’s an aftershock of the recession, which cost millions of people their jobs and, consequently, their health insurance, slowing medical spending. Continue reading
Filed under: Health Care Law Implementation, In the news | Tagged: Affordable Care Act, American Enterprise Institute, CLASS long-term care program, CMS Projects, Health Affairs, Joseph Antos, Nancy-Ann Deparle, Rick Foster, Sustainable Growth Rate formula | Comments Off on CMS Report: Healthcare Reform To Increase Spending